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    Narmada Agrobase Limited

    NARMADA
    Fast Moving Consumer Goods·22 Aug 2025
    Management Summary

    Narmada Agrobase Limited delivered a stable performance in Q1 FY26, reporting a total income of ₹11.41 crores. The company achieved significant margin expansion, with EBITDA growing 82% QoQ to 14.47% and PAT growing 31% QoQ to 8.93%. Management highlighted strategic plans for international expansion, targeting 15-20% of turnover from exports within three years, and expects capacity utilization to double by 2026-27.

    Highlights

    5

    • Total income of ₹11.41 crores reported for Q1 FY26.

    • EBITDA saw an 82% QoQ growth, reaching ₹1.65 crores with a margin of 14.47%.

    • PAT increased by 31% QoQ to ₹1.02 crores, achieving a margin of 8.93%.

    • EBITDA margin expanded by 114 bps and PAT margin by 630 bps, driven by efficient commercial procurement and cost control.

    • Strong brand recognition for 'Gaay Chhaap', 'Narmada Super', and 'Churma' in domestic markets.

    What Changed2

    vs Q2 FY26

    Guidance items5 → 2 (-3)Risks discussed3 → 0 (-3)

    Key financials

    Single quarter

    05 metrics
    1. 01Total Income₹11.41 Cr
    2. 02EBITDA₹1.65 Cr+82%QoQ
    3. 03EBITDA Margin14.5%
    4. 04PAT₹1.02 Cr+31%QoQ
    5. 05PAT Margin8.9%

    Guidance & targets

    2
    CategoryTargetPriority
    International Revenue
    Contribution to Turnover
    15% to 20%
    		High
    Capacity
    Capacity Utilization
    double
    		High

    International Revenue Contribution

    next quarter
    CurrentDeveloping stage, exploring
    TargetProgress towards 15-20% of turnover

    Why it matters

    Tracking progress on international expansion is key to achieving the stated revenue diversification target.

    We also have strong potential in export market with target to scale international revenue to 15% to 20% of turnover over the next three years.

    How to verify

    guidance_and_targets[category='International Revenue']

    0

    Q&A highlights

    8

    “Yes, sir. So, the company aims to increase export revenue contribution to like 50% to 20% in next year. So, what steps are being taken? ... For this, we are getting our registration done on B2B portal as well. We are also talking to the company in Vietnam. So, we will do our best. We are already doing our by-products. So, we will try to do extra in that as well.”

    Analyst sought clarification on the ambitious export target and the steps being taken to achieve it, which management clarified as 15-20% over three years and outlined initial steps.

    asked by Vinod Shah

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY26 Performance Overview

    Narmada Agrobase Limited reported a stable performance in Q1 FY26, with total income reaching ₹11.41 crores. The company demonstrated strong profitability improvements, with EBITDA growing 82% quarter-on-quarter to ₹1.65 crores, achieving a margin of 14.47%. Profit After Tax (PAT) also saw a significant 31% QoQ increase to ₹1.02 crores, with the PAT margin expanding to 8.93%. These margin expansions were attributed to efficient commercial procurement and stringent cost control measures.

    02

    Strategic Growth Pillars: International and Domestic Expansion

    The company is actively pursuing growth through both international and domestic market expansion. Management targets scaling international revenue to contribute 15% to 20% of total turnover over the next three years, with initial steps including B2B portal registrations and discussions in Vietnam. Domestically, Narmada Agrobase is expanding its reach into new markets such as North Rajasthan and Punjab, leveraging its established brand and dealer network to drive growth.

    03

    Focus on Value-Added Products and Quality Assurance

    Narmada Agrobase is diversifying into value-added products, with full R&D underway for items like fortified blocks. The company emphasizes its competitive advantage stems from its commitment to quality, producing chemical-free and natural cattle feed products, unlike some competitors who use urea. This focus on superior quality is a key factor in customer retention and brand loyalty, with 'Gaay Chhaap' being a recognized family brand for forty years.

    04

    Capacity Expansion and Operational Efficiency

    The company currently operates at 50% capacity utilization, producing 4,000 tonnes per month. Management projects a significant increase, with capacity utilization expected to double in the financial year 2026-27. This expansion is part of a broader strategy to meet rising demand and capture opportunities in the evolving cattle feed industry, ensuring sustainable growth for all stakeholders.

    05

    Sustainability and Eco-Friendly Operations

    Sustainability is an integral part of Narmada Agrobase's strategy, encompassing zero-waste operations, renewable energy adoption, and eco-friendly packaging. The company's R&D team is actively exploring renewable energy sources like white coal, a waste product which is used for heat generation, and is also considering biogas. These initiatives underscore a commitment to environmental responsibility alongside business growth.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.